Global coffee consumption estimated at 123 mn bags

The preliminary global coffee consumption for 2007 is estimated to be around 123 million bags, up 2.5 per cent over the previous year. India's consumption is pegged at 1.33 million bags.

International Coffee Organisation (ICO) Executive Director Nester Osorio, in his latest Coffee Market Report, said the global consumption in 2006 was around 120 million bags that comprised 31.3 million bags for domestic consumption in exporting countries and 88.6 million bags in importing countries."

Consumption in India is on the rise mainly through cafe culture and other out-of-home consumption. The country's consumption in 2006 was 1.33 million bags, up 4.72 per cent over 2005.

According to Osorio, the promotion of coffee consumption continues to be a key element of the ICO's work and member countries have approved two proposals aimed at developing opportunities globally.

In January 2007, ICO members endorsed a Brazilian proposal to develop an ICO coffee promotion network at a total cost of $114,500 funded by the ICO Promotion Fund.

The network involves establishment of a collaborative community on the internet, where participants will be able to interact and develop ways of promoting coffee consumption, making use of the latest tools made possible by internet.

The second project initiated in May 2007 is a pilot project to develop domestic coffee markets in India, Indonesia and Mexico for submission to the Common Fund for Commodities (CFC). This is aimed at creating an additional market for growers and preparing the local industry to export value-added products.

As for the production, Osorio put the 2008-09 figure between 123 and 126 million bags. For 2007-08, the total production is estimated around 116 million bags.

Exports during December 2007 amounted to 7.6 million bags, taking the total for 2007 to 95.5 million bags from 92.1 million bags in 2006. ICO, in its monthly report said, the world coffee exports totalled 7.46 million bags in January 2008, a drop of 9.4 per cent compared with 8.23 million bags recorded in January last year.

Exports in the first four months of coffee year 2007-08 (October-January) were down 8.1 per cent to 29.14 million bags compared with 31.71 million bags in the same period last year.